Does airlines’ eco-friendliness matter? Customer satisfaction towards an environmentally responsible airline

Abstract

The looming climate crisis requires an immediate response, also on an individual level. Consumers are being asked to reduce and replace their carbon-intensive consumption behaviors. One of the consumption behaviors with the largest impact is air travel. The growing awareness among consumers has led to the advent of flight shaming, which could seriously endanger airlines' existing business models. One way for airlines to respond to this threat is by becoming more eco-friendly. We therefore wanted to study whether the environmental responsibility of an airline could be positively associated with customer satisfaction and whether that could translate into more customer loyalty towards an eco-friendly airline. To study customer satisfaction with an environmentally responsible airline, we conducted a survey among 1170 customers of the Finnish flag-carrier Finnair. Finnair was chosen as a case because it is regarded as one of the leading airlines for eco-friendliness. The study found that being environmentally responsible can benefit airlines, because it can generate customer satisfaction alongside more established antecedents of customer loyalty such as brand image and value for money. Furthermore, the study found that satisfied customers were more likely to repurchase airlines' services and engage in positive word-of-mouth (WOM), resulting in customer loyalty. This finding links airline's perceived environmental responsibility to customer loyalty.